According to P&S Intelligence, the Middle East and Africa (MEA) compressor market stood at $3.0 billion in 2017 and it is projected to reach 3.9 billion by 2023, progressing at a CAGR of 5.1% during the forecast period (2018–2023). This growth can be majorly ascribed to the strong oil and gas sector in the region. Compressors are widely used in oil extraction, transportation, and refining processes. Moreover, the growing construction and food and beverage industries will also add to the market growth in the foreseeable future.
The construction sector uses compressors to supply compressed air to air-operated machinery at construction sites. Moreover, surging focus on infrastructure development plans, such as the Saudi Vision 2030, will drive the Middle East and Africa compressor market. With this vision, Saudi Arabia aspires to reduce the dependency on the oil and gas sector and shift investments toward other public service sectors like tourism, health, education, and infrastructure. Under this, this country plans to complete the construction of around 26,500 sq. km by 2025 in the new city of Neom.
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Additionally, growth in the food and beverage sector is creating lucrative opportunities for players in the market. Compressed air finds wide application in fluid pumps, packaging, product handling, air cleaning of containers, and food-filling machines. The fluid pumps are used for the movement of liquid products in production and filing processes. Whereas, the product handling involves moving of items at exceptional speed during the production process. Additionally, compressed air is used to generate vacuum in packaging, as it helps in protecting food from contaminants during storage and shipment.
Categories under the type segment of the Middle East and Africa compressor market include positive displacement and dynamic. In 2017, the positive displacement category accounted for the larger market share, due to the widescale application of positive displacement compressors in the automobile industry. Moreover, automotive original equipment manufacturers (OEMs) of North Africa are setting up new manufacturing units in Tunisia, Algeria, Morocco, and Egypt. This is acting as a catalyst to the growth of the market in this category.
